Austria Business

Apartments, Chalets, Guesthouses, Hotels and even Castles!

Welcome to our Amazing Austria website.

H! Thanks for visiting. We hope you find what you’re looking for here.

We are a property consultancy based in Devon, south west England. We are here for you discuss your property requirments or to come visit us before a trip to Austria. We have been advising and helping clients to purchase property and land in Austria for over 15 years.

Property and land for sale in AustriaIt costs you no extra to buy or invest in property and land with Amazing Austria. You get unbiased advice and guidance. We work together with our Austrian estate agent colleagues to find the property best suited to your lifestyle requirement.

News Update Austria

Any interest now, for the Hotel property market in Austria?

What is happening to commercial property market for Hotels and Guesthouses in Austria. Is it dead or just sleeping for now?

Long has it been the dream of many British to own a small guesthouse or hotel in the alps..ski-ing in winter, swimming in the lakes in summer!

Well, with the fears over Brexit and mortgage availability, the market has changed direction. We have found that the dream has not died, just the method of obtaining it.

Our clients are now requesting the possibilities of renting commercial property for a few years to see how it goes..before committing to buying. Our sellers are willing to accept a rental rather than waiting for sale. In many ways this is good for both buyer and seller. The buyer gets to try the lifestyle at a fixed rental and the seller gets a rent for their property…generally sellers are hoping for 4-6% ROI. and hopefully a sale in the long term. This can also work well for the property investor, as buying a commercial property can give them a better return than money sat in the bank!! So if any investors out there would like to buy into a business property with a guaranteed rental income…please let us know!

Austria refuses to treat suspected Isis fighter.

Austria’s new interior ministry on Wednesday refused to allow a suspected Islamic State group fighter to travel from Georgia to Vienna for emergency surgery, saying it would pose a “major” security risk.

Temirlan M, 19, is in a coma after being shot in the head during a special forces operation in northern Georgia on December 26th, the Kronen Zeitung newspaper reported.

He is believed to be linked to Chechen warlord Akhmed Chatayev, who is suspected of organising a 2016 attack at Istanbul’s airport.

Georgian authorities asked that the man receive emergency surgery in a Viennese hospital but a spokesman for Austria’s interior ministry said the government had vetoed his entrance to the country.

The arrival of Temirlan M would pose a “major risk to domestic security,” the spokesman said, adding that possible rescue or blackmail attempts could be made if the man entered the country.

A country of 8.7 million people with a large Chechen community, Austria has one of Europe’s highest numbers of foreign jihadists per capita.

Chatayev was killed during a counter-terror operation in Georgia’s capital Tbilisi in November.

He had been identified by Turkish media as the organiser of a triple suicide bombing at Istanbul’s main airport in June 2016 in which 46 people were killed and more than 200 wounded.

Austria’s new government, a coalition between the conservative People’s Party (ÖVP) and the far-right FPÖ entered office in mid-December, pledging to stop illegal immigration and to make national security a priority.

BA to buy Niki air?

British Airways owner IAG has emerged as the preferred bidder to take over bankrupt Austrian airline Niki, German news agency DPA reported on Thursday.

“In the search for a solution for the insolvent Air Berlin subsidiary, Niki, everything is pointing to a sale to British Airways parent IAG,” DPA wrote, without revealing its sources.

AFP PHOTO / ALEX HALADA

Niki’s insolvency administrator Lucas Floether earlier announced that creditors had agreed to begin final talks with a chosen bidder. He did not identify the bidder, but IAG — which also owns Spanish carrier Iberia — was widely reported to be one of four parties in the running to snap up all or parts of the holiday carrier.

Floether has previously said he wanted a deal to be clinched before the end of the month given Niki’s urgent need for fresh funding. IAG declined to comment when contacted by AFP.

Niki, the Austrian unit of failed Air Berlin, was forced to stop flying on December 14th after Lufthansa dropped plans to buy it because of EU competition concerns.

One of the four bidders for Niki, Austrian former Formula One champion Niki Lauda, told reporters his bid to re-acquire the airline he founded in 2003 had failed.

“I’m no longer in the race,” he told Austrian media, predicting that the airline would be dismantled.

“A sale abroad, as now seems likely, means a break-up (of the airline). This is a tragedy,” he said.

Germany’s Tuifly and Thomas Cook’s German subsidiary Condor were understood to be the other two parties interested in scooping up Niki, which employs some 1,000 people.

Niki, whose fleet of around 20 planes served resorts in southern Europe and north Africa, opened insolvency proceedings on December 13th after German giant Lufthansa unexpectedly withdrew its purchase offer.

Niki ceased flying the next day, stranding thousands of passengers. Lufthansa dropped its interest in acquiring Niki along with large parts of parent company Air Berlin after EU regulators expressed their concerns.

Last Thursday, the European Commission approved Lufthansa’s more modest bid to acquire the operations of Air Berlin’s LGW unit, comprising some 30 leased aircraft and 800 employees.

While 2017 has been a bruising year for some European airlines — after the collapse of Air Berlin and Monarch Airlines in the UK, and as Alitalia in Italy went into administration — IAG has bucked the trend.

The Anglo-Spanish group, owner also of Aer Lingus and budget airline Vueling, has said it expects underlying operating profit to hit 3.0 billion euros ($3.5 billion) in 2017, a 20-percent jump on the year before, thanks to rising demand and falling costs.

Smoking in Austria, to remain?

AFP PHOTO/JOE KLAMAR

The new leadership in Austrian politics, have put forward plans to retain the right to smoke in certain places.

The law to ban smoking in all Bars and restaurants, was due to be fully implemented by May 2018. But because of the lobbying by small bar and guesthouse owners, things are no longer as staright forward!

Austria’s far-right Freedom Party (FPÖ) said on Monday that a planned ban on smoking in all bars and restaurants due to come into force in mid-2018 will be scrapped.

FPÖ chief Heinz-Christian Strache said that the reversal was agreed in ongoing talks to form a coalition with the conservative People’s Party (ÖVP) following elections in October.

“The freedom to choose lives on. The existence of restaurants (particularly small ones) has been secured. Thousands of threatened jobs have been saved,” said Strache, 48, himself a smoker.

Unlike in most of Europe, in Austria people can smoke in eateries under certain conditions — which are widely flouted — including that it is confined to separate rooms.

The outgoing government, a coalition of the ÖVP and the Social Democrats, passed a law in 2015 banning smoking completely in bars and eateries, which was due to take effect next May.

The new government, which Strache and non-smoker ÖVP head Sebastian Kurz, 31, want installed before Christmas, will however make some concessions, media reports said.

Under-18s will not be allowed in smoking rooms of bars and restaurants, smoking will be outlawed in cars if under-18s are inside, and the minimum age for smoking will rise from 16 to 18.

Source: The local

Is BREXIT affecting the Austria property Market?

Is Brexit affecting the Austrian proeprty Market…this is a question we get asked a lot. From the UK buyer point of view it can be worrying to invest in a market that perhaps will have restrictions on Uk travellers. But if one is logical, people have been buying in Europe before the EU seemingly became one large country!!

So even if a visa is required, as when one travels to the USA and other countries, it is only a little bit more paperwork.

So, for property purchase, the problem has been the Banks lack of mortgage availability for the last few years….this has of course meant people with a non Euro income cannot get a mortgage! This has also affected Banking business and consequently profits. Many of the major lenders have been lobbying the Gov ernment to ease up on these restrictions…so watch this space.

Is smoking affecting the property market?

As of 1st January 2018, smoking is banned in all interior bars and restaurants.

The Austrian’s have had a few years grace to come to terms with the effects of this law. But it will affect the small guesthouse with a bar. Many of these guesthouses rely on the locals who come in and sit at the bar with a few beers…and of course quite a few cigarettes!!

We have already noticed that this past year, more requests from Guesthouse owners to sell up their property, as they feel the locals will not want to sit outside in the temperatures we have in Austria over the winter months!!

So, one could say smoking is affecting the property market, and with many more properties coming onto the market, this will have the effect of depressing property values…particulary in the less touristic areas.

Maybe now is the time to consider that investment in Europe and pick up a bargain, as one does not need to continue a hospitality business, but simply enjoy a very large property near ski and lakes at a lower price.??

The buy to let market in Austria

The buy to let market in Austria now seems to be catching up with other forms of investment in Austria.

With the advent of new regulations on Holiday apartment letting, many clients are turning to the long term rental market.

This of course is good as a pure investment, as it should generate a 6% return. Still better tan depositing money in the bank and you also have the Capital gain on value. …but if you wish to have a holiday home for own use and a rental income, this is not suitable.

Many families and friends are pooling their resources to buy a property, so they do not need to holiday rent. This can have great advantages, if say two or more people buy, and share the running costs and the use.

New rules for Holiday property renting.

The Austrian authorities have moved the goalposts once again! The latest regulations for holiday renting are coming into force on 1st January 2018.

These stipulate that second home apartments can not be commercially holiday rented…ie: using websites such as Bookings com etc, to sell rentals . Unless of course the owner gets permission of all the other owners in a building. As this is very unlikely to happen, it means that if you own a holiday apartment with secondary residence status, you can only use as a second home for yourself, family and friends. You can also rent long term and have a tenant but you cannot commercially holiday rent, the apartment, for short periods.

This of course is going to have quite a knock on effect to the property market.

It will mean of course that the value of many properties will drop, because of the restriction. Part of the benefit was to holiday rent to get a return on your investment, and of course this in itself would have added a premium to the property value.

We will be updating as we get more information.

Google Street View finally maps missing Austria!

Google’s Street View cars started on Thursday taking images in Austria, the only EU country along with Germany to remain largely absent from the popular online service showing 360-degree pictures of places around the world.

The project, launched in 2007, lets computer users view panoramic street scenes on Google Maps and take a virtual “walk” through cities.

The photos are processed in the United States, where details such as faces and registration plates are automatically blurred before being published on Google Maps.

Some countries have been reluctant to grant Google access because of worries linked to data collection.

In 2010, Google had begun to roll out its service in Austria and neighbouring Germany but was ordered to halt operations over alleged privacy breaches.

The company admitted that vehicles had accidentally recorded personal data from wireless networks.

Although Austria lifted its temporary ban a year later, Street View decided not return to the alpine nation — until now.

The fresh start was timed to coincide with Street View’s 10-year anniversary, Google said in a statement.

Cars equipped with special cameras will tour Vienna, Linz and Graz until November.

“The official launch of Street View in Austria is expected to happen in six to twelve months,” Google Austria spokesman Wolfgang Fasching-Kapfenberger told AFP.

Under Austrian law, Street View cars will only be allowed to capture photos but not videos.

The service still has a very low penetration rate in Germany, which has some of Europe’s strictest privacy laws due to the abuses under its Nazi and communist dictatorships.

As a special concession to privacy concerns, Germans can have their homes or businesses pixelated, as well as opt out of the service altogether.

Source: The Local – Google

Property prices in Austria 39% increase!

Property prices in Austria have risen by an average of 39 percent since 2010!

A new house in Austria (123m2) now costs on average €359,000. Prices for new-build properties have increased the most over the past six years in Styria (where the average cost is now €301,000), Burgenland (€260,000) and in Lower Austria (€338.000).

New homes are most expensive in the capital Vienna, where a 123m2 apartment or house costs around €471,000 – an increase of 22 percent since 2010.

The value of older properties has also risen on average by around 35 percent. “Anyone who purchased property in 2010 can be very happy from today’s point of view,” according to Christian Nowak, Managing Director of ImmobilienScout24 in Austria.

Bargain prices for older properties can be found in Burgenland, Carinthia and Styria – with average prices for a house between €230,000 and €290,000. In Vorarlberg and Salzburg you can expect to pay double or triple that, with average prices between €515,000 and €560,000. The most expensive older properties are in Vienna (where a house or apartment with 169 m2 will set you back around €710,000) and in Tyrol (where average prices are €640,000).

New-build apartments now cost on average €351,000 euros for 80 m2.

Monthly rental costs have also risen in the past six years. For a used apartment you can now expect to pay on average €9,80 per square metre (not including operating costs) – an increase of 11 percent since 2010.

Rental prices for new properties have risen steeply, by 21 percent, with average costs now €11,50 per square metre. In Vienna council-owned properties, where rents tend to be cheaper and only rise according to inflation, are in high demand. Wiener Wohnen says it currently has 13,100 people on its waiting list, who have registered their interest in renting a council flat.

The fact that property prices are increasing should be cause for alarm, says Georg Spiegelfeld, president of the Austrian brokerage network Immobilienring IR. “There are not enough properties available and this problem will increase. Around 300,000 people are expected to move to Vienna over the next few years… and the city has not prepared for this.”

He said that the only answer is to “build, build, build and redesign”.

Am I allowed to buy in Austria?

We get asked this question so many times, and particularly with Brexit looming. Am I allowed to buy in Austria and would the goverment take my property?? One could ask the same questions about Cornwall, with the changing rules.

Well, people were buying in Austria before the UK joined the common market, and will no doubt still be buying when we are not in the EU.

Yes, you are allowed to buy in Austria, just as a Non European can buy if they conform to the rules. This is the part that has changed. There are new rules and regulations for buying and financing property, and this applies to all EU citizens and not just the British!

We realise it can be confusing as people hear different stories from friends or read different information on the internet.

We do not have enough space here to cover all in detail, but to try guide and clarify; Austria has separate criteria for different regions, villages and areas, plus differing property designations!

You can generally buy a house or apartment in all regions of Austria to live in as your main residence. The Austrian tax office are very happy with this, because as a main resident all your worldwide income would be taxable in Austria.

So, the parts that are difficult are the secondary residences and holiday useage.

Secondary residence, is the permission to have a second home for your own and family use. It does not imply permission to rent it out for holidays to all and sundry. Many buyers have been caught out with this. We get phone calls and emails saying they have bought a holiday apartment and are not allowed to rent it!

Can we help? Sorry, we cannot, it is too late. It is down to the management company and all the other owners. They would need to get more than 50% of other owners agreeing to their commercially letting for holidays.

Certain areas are designated as holiday use, but this does not mean that every apartment building is a holiday use! So, there are 2 things to check here. Does the area and the building allow holiday renting use?

It is always best to take legal advice or get your consultant to check all these things for you.

Have Austrian mortgages become extinct?

Are Austrian mortgages becoming extinct?? Well, one would think so, with all the new banking regulations. The Basel 111 agreements have a lot to answer for. But also as of April this year, the new regulations got tougher.

These demand that for a mortgage, the income to support the mortgage originates in Austria. Therefore the government can ensure they get their tax wack on the income….great for deterring money laundering, and for locals who have their income in Austria, but what about the UK property investor, or in fact any EU investor?

So, your Income is in the UK? Besides getting a job in Austria…the only real options at the moment are a commercial mortgage(more expensive) or to release funds in your UK property. This can be quite sensible as many UK institutions are offering low mortgage rates. The commercial mortgage route, means you need to set up an EU company from which mortgage payments would be made.

We have found, that over the past year, Clients are now considering buying businesses that already have an existing income! This can satisfy the lending bank. The other thing, is that Banks in Austria still remain automous for their decision making on lending. Unlike the UK where the mortgage market is controlled by half a dozen large institutions.

Is the Austria Property Market being affected by fall in Sterling value?

The fall in Sterling’s value, has affected the British buyer, but not the general property market.

Local Buyers and those from surrounding countries buy in Euros, as does the Irish buyer.

So, the effect on the Austria property market, minimal. But what about the British buyer, is there anything they can do to negate the low exchange rate?

Many British buyers are opting for Off-Plan new build projects. With these it only requires a deposit and then the payments are staged over the period of the build, giving more time for Sterling to recover…link this with a small mortgage, as most new build projects have financing in place and you are on the winning side.

The other sensible option is to have a Sterling Account at the Austrian Bank. This works by depositing your funds in Sterling…they remain in Sterling and act as a guarantee for a Euro mortgage. (email us if you want more information)

The benefits of investing in the Austrian property market is that: it does not have the ‘Boom and Bust’ periods that other European nations have. This is down to the Capital gains taxes on resale profits.

Could the weather affect Austria property prices?

Spring skiing in Austrian resorts like St. Anton or Ischgl could become a thing of the past if a long-term trend discovered by Swiss researchers continues.

This could certainly affect the value of property in the alpine resorts. In a new study researchers found that Switzerland has nearly 40 fewer snow days a season than it did in the 1970s, even in high altitude resorts. Austrian resorts mirror this change.

The situation could have a serious impact on ski tourism in the Alps, with the higher resorts which typically offer Spring breaks also affected. This would have an effect on property prices, either dragging them lower or remaining static.

Austrian experts echo the Swiss findings, with the Central Institute for Meteorology and Geodynamics (ZAMG) confirming that a higher average temperature rise has been recorded in the Austrian Alps compared to other regions around the world, and that this means that “in principle we can expect a shorter duration of snow cover in the Alps”.

Perhaps the answer for property investors is to look to the lakeside resorts that get high tourism figures in summer and Christmas markets in winter months?

Source: The local:

Photo: St. Anton ski resort. Photo: 24seven/Wikimedia

Amazing Adriatic arrives!

Over the years we have had many requests from our clients about property on the Adriatic coast. Being only 2.5 hours drive from Austria to Croatia, many Austrians use this area for main holidays and weekend breaks…perhaps a little similar to Londoners visiting Devon!

Well, we have listened and working together with our Adriatic colleagues, we are pleased to announce the launch of our new property investment pages for the Adriatic coast.

Is it safe to invest there? Yes.. the legal system is similar to Austria, where all properties are registered……there are of course older properties with ownership problems..mainly because families never registered a property correctly, but this is why you pay a lawyer!

Over the coming weeks we will be adding many property choices ranging from small farmhouse to luxury villas driectly on the coast. So, please make it a habit to visit us regularly. Adriatic pages.

Property and land for sale in Austria. Check all our property and land for sale in Austria pages. There are properties for holiday use or investment in most sort after areas of Austria.